A single investor (Ms. Rich) has a salary income of 400,000$ and an AGI of 400,0

Question

A single investor (Ms. Rich) has a salary income of 400,000$ and an AGI of 400,000$. She has total itemized deductions and exemption of 20,000$ (after all phase-outs) each year. There is no state income tax. Ms. Rich has owned Duke Energy stock for 4 years. She paid 10,000$ for the stock. The stock has a current value of 30,000$. Assume that the taxpayer sold the stock in December 2015 for 30,000$. How much additional federal income tax will be paid as a result of the sale (assuming the additional income will not affect the phase-out provisions for itemized deductions)?

a. 3,000 b. 4,000 c. 4,500 d. 6,600 3. 0

Explanation / Answer

Ans:

=$30,000*10%

=$3,000

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